MarAd releases new MSP program participants

MarAd releases new MSP program participants    The U.S. Maritime Administration has released its list of U.S.-flag cargo ships to operate in the federal government’s new Maritime Security Program.
   The 2003 Maritime Security Act authorized the creation of a new MSP program to ensure that the Defense Department has immediate access to a fleet of 60 militarily useful commercial U.S.-flag ships during times of war or national emergency.
   The reauthorized program includes annual funding for fiscal years 2006-2008 of $156 million and increases to $174 million in fiscal years 2009-2011, and t $186 million for fiscal years 2012-2015.
   The original MSP, established in 1996, and set to expire Sept. 30, includes 47 ships, of which more than half are container ships. Under the new MSP program, these 47 ships were grandfathered into the new program. These include the largest MSP operators: Maersk Line Ltd. with 19 containerships and APL Marine Services with nine containerships.
   MarAd began accepting applications for MSP over a two-week period, starting Oct. 1. These applications included 142 ships available for the new 60-vessel MSP program. MarAd had to whittle down the application pool to 13 vessels for the new MSP program by mid-January.
   The new MSP participating ships and their operators are:
   * “Maersk Rapier” (tanker), OSG Shipholding Group.
   * “Maersk Regent” (tanker), OSG Shipholding Group.
   * “Maersk Richmond” (tanker), OSG Shipholding Group.
   * “Hercules Leader” (roll-on/roll-off), Central Gulf Lines.
   * “Takasago” (ro/ro), Fidelio Limited Partnership.
   * “Resolve” (ro/ro), Fidelio Limited Partnership.
   * “Otello” (ro/ro), Fidelio Limited Partnership.
   *    “Aida” (ro/ro), Fidelio Limited Partnership
   * “Splendid Ace” (ro/ro), Liberty Global Logistics
   * “Lykes Motivator” (gear cont.), Lykes Lines Ltd.
   * “TMM Yucatan” (gear cont.), Lykes Lines Ltd.
   * “Industrial Challenger” (heavylift), Patriot Shipping
   * “Industrial Chief” (heavylift), Patriot Shipping
   “The structure of MSP encourages flexibility as operators are able to upgrade their fleets to compete in the global marketplace,” MarAd said in a statement today. “MarAd approvals are required to ensure that vessels entering the MSP contracts meet DoD’s (Defense Department’s) needs.”
   MarAd and the Coast Guard have established expedited procedures to encourage reflagging of modern, efficient vessels into the U.S. fleet. For example, the four mid-1990s vintage ro/ro vessels brought to the new MSP program by Fidelio Limited Partnership will be transferred from the company’s parent Wallenius Wilhelmsen Lines’ foreign-flag fleet through these expedited re-flagging measures.
   During the 2002 MSP hearings before the House Armed Services Committee, Defense Department officials specified their need to diversify the MSP fleet beyond containerships, and encouraged enrollment of more roll-on/roll-off vessels, in addition to product tank vessels and other specialty ships.
   The reauthorized MSP requires the enrollment of five new U.S.-flag product tank vessels. However, these slots have been temporarily filled with other vessels, including the three Maersk tankers operated by OSG and the two Industrial heavylift ships operated by Patriot Shipping. MarAd will remove these vessels once the five new U.S.-constructed product tankers are awarded.